Wheat Opens the Week with Strong Note, Soybeans and Corn UpCorn, soybeans, and wheat are trading back on positive on Firday after the profit taking performed on Friday.
Agriculture commodities are trading with a firm note on Monday as investors are betting on a problematic harvesting this year that would lead soybeans, corn, and wheat among others to supply problems.
Heavy rains in the midwest have delayed planting season, and now farmers are having problems to develop a regular season. Also, the trade war between the United States and China is raising concerns about farmer sales to the Chinese market, one of the biggest in the world.
In this framework, grains were rallying in the last week except for Friday, when traders closed position amid profit taking and end-month rebalancing.
Soybeans’ prices trade opened the week with gains as the unit is consolidating last week gains just ahead of 8.800.
Corn is recovering ground on Monday as the grain opened the week with gains after the setback performed on Friday. However, the pair remains subdued by the 4.300 area.
Wheat has recovered all Friday’s losses on Monday, and it is even adding gains and reaching fresh multi-month highs at 5.165.
Wheat extends highs near to 5.200
Prices of wheat are posting gains on Monday after the Friday’s setback as investors are repositioning themselves again. The unit jumped to 5.165, the highest level since February 14.
Currently, CFDs on Wheat are trading at 5.095, 2.20% positive on the day. The unit is consolidating levels above the 5.000 price, but the 5.150 area seems to be strong enough to put a pause in the grain’s advance.
Once wheat breaks that level, next resistances will be found at 5.225, 5.310, and 5.500. Then, the unit will test the critical 5.800 area.
Soybeans positive on Monday but remains below 8.800
After a correction from 8.800 to 8.660 performed on Friday, soybeans have opened the week with gains as investors are retaking their positions after the beginning of the month.
On Monday, Soybeans are trading at 8.740, 0.64% positive on the day against the US Dollar. However, the unit remains below the 8.800 area.
It seems the unit is testing a critical resistance, but in the long term, the chart is signaling more gains, If the unit can break above the 8.800, check resistance at 9.000 and 9.200.
To the downside, a close below the 200-day moving average would open the door for a more significant correction to 8.550, 50-day moving average, and 8.345. Then, fasten your seatbelt to the 8.000 area and the 7.800 support.